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Malibu Boats Announces Historic Six-Year Global Partnership with IWWF
Globenewswire· 2025-09-15 12:49
Core Insights - Malibu Boats, Inc. has announced a six-year global partnership with the International Waterski & Wakeboard Federation (IWWF) starting January 1, 2026, to support premier waterski, wakeboard, and wakesurf events, making Malibu the exclusive official towboat partner [1][4] Company Overview - Malibu Boats, Inc. is a leading designer, manufacturer, and marketer of a diverse range of recreational powerboats, including performance sport, sterndrive, and outboard boats [5] - The company is the market leader in the performance sport boat category through its Malibu and Axis brands and holds a leading position in the 20'–40' segment of the sterndrive boat category with its Cobalt brand [5] - Malibu Boats is recognized as a preeminent innovator in the powerboat industry, appealing to a broad range of recreational boaters and watersports enthusiasts [5] Partnership Details - The partnership will feature two elite Malibu models: the Response TXi and the Malibu M230, both known for their precision, power, and innovation in competitive watersports [2][3] - The Response TXi has set more world records in waterskiing than any other boat, while the M230 is favored by professional riders for its performance [2][4] - This collaboration aims to enhance athlete development and expand the reach of towed watersports globally [4]
Malibu Boats(MBUU) - 2025 Q3 - Earnings Call Transcript
2025-05-08 13:32
Financial Data and Key Metrics Changes - Net sales increased by 12.4% to $228.7 million, with unit volume rising by 12.8% to 1,431 units, driven primarily by increased unit volumes in the Malibu segment and favorable model mix across all segments [16][19] - Gross profit rose by 13.4% to $45.7 million, with gross margin as a percentage of sales increasing by 20 basis points to 20% [18] - Q3 GAAP net income surged by 119.4% to $13.2 million, while adjusted EBITDA increased by 16% to $28.3 million, with adjusted EBITDA margin rising by 40 basis points to 12.4% [19][20] - Non-GAAP adjusted fully distributed net income per share increased by 14.3% to $0.72 [20] Business Line Data and Key Metrics Changes - The Malibu and Axis brands accounted for approximately 52% of unit sales, while saltwater fishing represented 22.8%, and Cobalt made up the remaining 25.2% [17] - Consolidated net sales per unit decreased by 0.3% to $159,792, primarily due to an unfavorable segment mix [18] Market Data and Key Metrics Changes - Dealer inventories entering the selling season are healthy and well below last year's levels, with expectations to bring dealer inventories down to the mid-teens percentage [9][27] - Retail environment remains challenging due to elevated interest rates and macroeconomic uncertainty, affecting consumer sentiment and discretionary spending [9] Company Strategy and Development Direction - The company emphasizes innovation as a cornerstone of its competitive advantage, with nearly 40% of Malibu boat show unit sales driven by two new premium models introduced this year [11] - The company is committed to maintaining dealer health and operational excellence while navigating current market conditions [13] - A balanced approach is maintained, focusing on long-term dealer and brand health over short-term volume [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing industry softness but highlights solid execution and growth in Q3, with expectations for retail markets to decline by double digits for the full fiscal year [6][22] - The company does not expect tariffs to have a material impact on its cost structure for the remainder of fiscal 2025 and is deploying various tariff mitigation strategies [23] Other Important Information - Capital expenditures are expected to be tightened to $25 million to $30 million, with a modest reduction in share repurchases planned [21] - The company finished Q3 with over $39 million in cash and over $300 million in untapped liquidity on its credit facility [21] Q&A Session Summary Question: What would the goal be by June with respect to dealer inventory? - The company expects to bring dealer inventories down to the mid-teens percentage, below last year's levels [27][28] Question: How is the behavior of Malibu customers changing? - Retail is seeing some repeat buyers returning, particularly cash repeat buyers, while new buyers remain a small percentage of overall retail [30][31] Question: What are the competitor promotional activities like? - The company has maintained consistent promotional levels and does not expect to elevate them significantly, focusing on new product performance [36][37] Question: What is the company's tariff risk? - The company sources about 18% to 20% of its cost of sales from outside the US, with no singular large sources identified [45][46] Question: How is demand trending in the quarter? - Demand has followed a seasonal ramp but has not met previous expectations for robust growth [51] Question: What changes have occurred in the saltwater segment? - There was some improvement in the saltwater segment, particularly in Florida, but it did not return to growth [60] Question: What has changed in the cost structure leading to adjusted EBITDA pressure? - Adjustments were made to production levels based on market expectations, impacting overall financial projections [68] Question: How will capital allocation be managed in the current environment? - The company remains committed to capital allocation priorities but may modify tactics based on market realities [69]